INVERSIONS DON'T ALWAYS PAY OFF FOR INVESTORS. Inversions might be the hottest trend in tax world this summer, but a new Reuters analysis has found that moving HQs overseas doesn't always mean better performances in the market. Many companies that have inverted have "failed to produce above-average returns for investors," Reuters reports. "Looking back three decades at 52 completed transactions, the review showed 19 of the companies have subsequently outperformed the Standard & Poor's 500 index, while 19 have underperformed. Another 10 have been bought by rivals, three have gone out of business and one has reincorporated back in the United States.

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"The analysis makes one thing clear: inversions, on their own, despite largely providing the tax savings that companies seek, are no guarantee of superior returns for investors. … With only four exceptions, the inverted companies that were still in business since doing their deals either uniformly underperformed or outperformed on both benchmarks." Read on for the full report: http://reut.rs/1BsBQAR

TREASURY PREPPING INVERSION IDEAS. The Wall Street Journal reports that "Treasury Department officials are assembling a list of administrative options for Secretary Jacob Lew to consider for ways to deter or prevent U.S. companies from reorganizing overseas primarily to avoid paying federal taxes, an agency official said. … Mr. Lew is expected to select one or more of the options as a way to address so-called tax inversions." http://on.wsj.com/1n3bQ5l

But Treasury doesn't seem to be in a rush. "The Obama administration will need more than a few weeks to weigh potential administrative actions to discourage U.S. companies from reducing their tax bills by moving to other countries, a Treasury Department official said on Monday," Reuters reports. "'The issues are complex, so the work will not be done in a week or two,' said the official, who asked not to be identified." http://reut.rs/1rj7luS

IT'S TUESDAY! And happy DC Beer Week! Your Morning Tax-er sampled several delicious brews last night to celebrate, and would recommend the NSFW — an Imperial Black IPA from Atlas Brew Works — if you ever spot it on a beer list. If you want to talk taxes, you can find me at mweinger@politico.com or on Twitter at @ mweinger. As always, please follow @ POLITICOPro and @ Morning_Tax.

HOUSE & SENATE: Out.

TODAY: ALASKA TO VOTE ON OIL TAX CUTS. Alaskans head to the polls today to vote in a statewide referendum that could change up the way oil companies are taxed. The Associated Press has a preview: "Alaskans head to the polls Tuesday to decide if their old system for taxing oil companies is better than the new one. Ballot Measure No. 1 asks voters if they want to reject the 2013 law that its supporters have dubbed the 'More Alaska Production Act.' It replaced the production tax championed by former Gov. Sarah Palin, known as 'Alaska's Clear and Equitable Share,' or ACES. Critics say ACES was an investment killer. It gave tax credits for investment but contained a progressive surcharge that companies say ate too deeply into profits, discouraging new investment. Referendum advocates contend Gov. Sean Parnell could have fine-tuned ACES but instead pushed the new law, which gives huge tax breaks to profitable petroleum companies at the expense of revenue that belongs to the people of Alaska." http://bit.ly/1BuzAJk

D.C. HAS LOWEST PURCHASING POWER IN THE COUNTRY. Bad news for all you Morning Tax readers in D.C.: Our Kelsey Snell reports that District residents have the lowest purchasing power in the country, according to a Tax Foundation analysis. "The value of goods that $100 can buy in DC is equal to $84.60 compared to the national average, according to their analysis of data from the Bureau of Economic Analysis. The same money can get you $115.74 in Mississippi. The District tops the list of the states where $100 is worth the least, followed by Hawaii at $85.32, New York at $86.66, New Jersey at $87.64, and California at $88.57. Mississippi is joined at the high end of the purchase power spectrum by Arkansas where $100 buys you $114.16 in goods, Missouri at $113.51, Alabama at $113.51, and South Dakota at $113.38. "

MIND THE GAP. Accounting Today reports that the IRS "has denied tax-exempt status to a group that claimed it was dedicated to protecting the human rights of defenseless victims of involuntary microwave and mind control attacks." http://bit.ly/1sQdjmM

TEXTBOOK TIPS. Electronic, rental and shared textbooks have become popular ways for college students to save money as the cost of books and course supplies has risen to about $1,200 a year. But in 22 states, customers who still prefer new hard copies can at least save the hundred bucks or so in sales tax, and they may not even know it. Consumer finance website ValuePenguin breaks down the textbook tax exemptions and how to benefit: http://bit.ly/1ySkadX

WHAT'S ON. The fourth IRS Nationwide Tax Forum kicks off today in National Harbor, featuring more than 40 seminars and workshops, as well as a keynote speech by IRS Deputy Commissioner for Services and Enforcement John Dalrymple. … The 2014 primary elections for Wyoming and Alaska will be held.

QUICK LINKS:

—The Washington Times reports, "An IRS employee is facing criminal charges that he disclosed personal information on former and current agency employees and contractors from data he had stored on his home computer network." http://bit.ly/1mfon5P

—The New York Times' DealBook: "Tax Burden in U.S. Not as Heavy as It Looks, Report Says." http://nyti.ms/1pCW4CO

—FT reports, "The UK tax authority will on Tuesday set out details of plans to make it easier to prosecute people who hide money offshore, as part of a government crackdown on tax evasion." http://on.ft.com/1tca485

POLITICO’S DEFENSE TWEET HUB, NOW LIVE – Featuring tweets from more than 300 defense influencers, policymakers and reporters, follow the latest online conversations about Iraq, weapons programs, the Pentagon budget and more: http://politi.co/1pG3w08

** A message from the American Forest Foundation: One in four rural Americans is a family forest owner. Collectively, these 21 million families and individuals care for more forests than the government or corporations, providing Americans with clean water, wildlife habitat, rural jobs and more.

Owning forestland is much like a small business or farm. Landowners have annual expenses and make investments to keep their land healthy. They also take on incredible risk, such as wildfire, insects, disease, hurricanes and more. Yet most will not see income from their trees but once a generation. Learn how the tax code can make or break a landowners’ ability to keep their land in trees and keep it productive. goo.gl/wYoqbU. **

About The Author

Mackenzie Weinger is a POLITICO Pro Tax reporter. She graduated with honors in 2010 from UC Santa Barbara with a B.A. in history. She spent four years working for the student newspaper, the Daily Nexus, serving as editor-in-chief in her senior year. Before joining POLITICO, Weinger interned in D.C. at National Journal’s The Hotline and at Roll Call. She has also written for Calbuzz, a website focused on California politics, and interned at Anthem Press, an academic publishing house in London.

Weinger is a native of Los Angeles and a die-hard Lakers fan who enjoys studying history and winning pub quizzes.